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Articles Posted in Commercial Transactions

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Graphic shows two hands. One holding a contract that shows Force Majeure and the other hand signing.As a commercial transactional lawyer, I often speak to my clients and colleagues about contract management. While I am usually heavily involved in many stages of the contract lifecycle – most notably, negotiations, drafting, closings and amendments – the real work (and most problems) arise during contract performance, which is the time the contracting company is typically “on its own.”  I stress to my clients that competent management of contracts post-execution is critical: your management team needs to know its contractual obligations: due dates and milestones, payment terms, and areas of performance. Who’s doing what, when, and for how much?  I recommend companies appoint a contract manager to maintain each contract and its pertinent information, and create a database of performance, payment, and other obligation information, along with applicable deadlines and a “tickler” system.

Now, in the wake of COVID-19 and its tremendous impact on businesses, it is important to pull out those databases, and update them with information particular to the current state of operations – yours and your contracting partners. Continue reading ›

Flyer advertising CLE with panelists, date and timeKHF Managing Member Edward T. Kang and Member Kandis L. Kovalsky are both presenters in an upcoming CLE on the advantages and disadvantages of using arbitration as a resolution mechanism for complex commercial cases. Kandis also serves as Course Planner.

This 3-hour CLE will review the history of arbitration and the United State’s growing trend favoring arbitration. The panel, comprised of experienced practitioners and arbitrators, will discuss the preliminary conference, discovery, awards as well as considerations for increasing the efficiency in arbitration. Continue reading ›

Kang Haggerty & Fetbroyt Members Edward T. Kang, Jacklyn Fetbroyt and Kandis L. Kovalsky are attending the 2020 National Association of Minority and Women Owned Law Firms (“NAMWOLF”) Driving Diversity & Leadership Conference in Fort Lauderdale, Florida from February 22nd to February 25th. Continue reading ›

Headshot of Gregory H. Mathews

Gregory H. Mathews

Headshot of Henry J. Donner

Henry J. Donner

KHF is pleased to announce that Gregory H. Mathews (Commercial Litigation) and Henry J. Donner (Construction Law) have been selected for inclusion in The Best Lawyers in America© 2020, recognized for excellence in their respective practices for the Philadelphia, Pennsylvania market.

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Gregory H. Mathews

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Henry J. Donner

KHF is pleased to announce that Gregory H. Mathews and Henry J. Donner have been selected for inclusion in The Best Lawyers in America© 2019.

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Image from Hines, Owner & Developer

On Wednesday, March 14, 2018, the Jewish Federation of Greater Philadelphia’s Real Estate affinity group (JFRE) hosted Mayor Kenney and Seth Shapiro, COO of The Goldenberg Group and Chairman of the Board of Philadelphia Gas Works, to discuss the City of Philadelphia’s 2019 fiscal Budget and its impacts on the City’s businesses and real estate industry. The event took place at the brand new luxury apartment building located at 1213 Walnut Street. Shapiro and Kenney discussed the following:

  • Improving educational outcomes and workforce readiness
  • Improving the Philadelphia school system and increasing wages
  • Increasing Philadelphia property taxes
  • Increasing Philadelphia’s realty transfer tax

Continue reading ›

What is a bulk sale clearance certificate, and how is a bulk sale clearance certificate related to a Pennsylvania real estate transaction?  In Pennsylvania, a bulk sale clearance certificate must be obtained in all transactions involving the sale of fifty-one or more percent of the assets of a business, including real estate.  Because it is common for property owners to create single purpose entities to own the real estate, bulk sale clearance certificates are required in many real estate transactions, since the real estate represents the sole asset (i.e., 100%) of the assets owned by such SPE.  A bulk sale clearance certificate from the Pennsylvania Department of Revenue verifies that a particular entity satisfied all tax obligations due to the Commonwealth of Pennsylvania, including taxes, interest, penalties, fees, charges and any other liabilities up to and including the date of transfer.

Moreover, under 69 P.S. § 529, every corporation, joint-stock association, limited partnership or company organized under the Commonwealth of Pennsylvania or any other state that engages in business in the Commonwealth of Pennsylvania which sells in bulk fifty-one percent or more of any stock of goods, wares or merchandise of any kind, fixtures, machinery, equipment, buildings, or real estate, shall give the Department of Revenue ten days’ notice of the sale, prior to the completion of the transfer of such property.

To provide proper notice and comport with Pennsylvania law, the seller must file form REV-181, the Application for Tax Clearance Certificate, with the Pennsylvania Department of Revenue and the Pennsylvania Department of Labor and Industry ten days before the closing of the sale. A copy of the agreement of sale and preliminary settlement statement should be included with the Application for Tax Clearance Certificate.  (Note, however, that the Department of Revenue often requests re-submission post-closing so that all closing information and interim tax returns through the date of closing may be submitted).  In addition, all such entities must file all state tax reports with the Department of Revenue to the date of the proposed closing on the transfer of property and pay all taxes and unemployment compensation contributions due to the Commonwealth of Pennsylvania through the date of closing. If all state tax reports have been filed and if all state taxes and unemployment compensation contributions are paid up to the date of the proposed transfer, the State issues a clearance certificate to the seller, which is then provided to the buyer.

qtq80-HnVsL4-150x150In the August 21, 2017 edition of The Legal Intelligencer, Henry Donner, Of Counsel at KHF, and David Dean, an associate of the firm, write on the Practitioners’ Guide to Navigating New Mechanics’ Lien Law Amendments.

By: Henry Donner and David Dean

Pennsylvania’s Mechanics Lien Law of 1963 was amended in late 2014 to require the commonwealth’s Department of General Services to create an internet-based State Construction Notices Directory. As required by the law, the directory went live on Dec. 31, 2016, providing a standardized, statewide, internet-based system for construction notices. This statutory scheme imposes new requirements on project owners, contractors, and subcontractors, compliance with which can drastically affect those parties’ rights under the Mechanics Lien Law. Practitioners representing any of the traditional parties in a construction matter should be sure to familiarize themselves with these new provisions, and advise their clients accordingly.

Kang Haggerty & Fetbroyt, a boutique business litigation firm with offices in Philadelphia, PA and Cherry Hill, NJ, congratulates Henry Donner, Of Counsel, on being selected as a notable practitioner for construction law in the 2017 edition of Chambers USA: America’s Leading Lawyers for Business.

According to Chambers:  “The ‘outstanding’ Henry Donner is a highly experienced attorney who comes recommended for his work on behalf of architects, developers, contractors and engineers. He provides assured counsel in cost disputes and design error cases.”

Chambers notes that with Donner’s prior firm, his construction law team was known for “offering expertise on all aspects of the construction development process, including contract negotiations and litigation. Possesses extensive experience representing a broad client base, consisting of managers, contractors and design professionals.”

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